YGEA reference price dips as gold spot price falls

Yangon Region Gold Entrepreneurs Association’s reference price declined to K2,197,000 per tical (0.578 ounce or 0.016 kilogramme) tracking the decrease in gold spot prices. As the gold price rallied to $1,955 in the international market, the reference price increased to K2,303,200 per tical on 2 February. On 4 February, the price moved down to K2,197,200 per tical following the spot price dipping to $1,865 per ounce. The figures indicated an increase of $90 per ounce and over K100,000 per tical within two days.

Despite the YGEA’s reference price, the pure gold spiked at K2,830,000 per tical in the unofficial market, showing a large gap of over K600,000 per tical. YGEA calculated the price depending on the Central Bank of Myanmar’s reference exchange rate of K2,100, with some addition, while the US dollar is exchanged at K2,860 in the unofficial forex market. The price of gold in the domestic market is highly correlated with the gold spot prices and dollar exchange rate.

The soaring dollar exchanging at over K4,500 drove the pure gold price up to a record-high of K3.7 million per tical in late August 2022. For the gold price to decline, the Ministry of Natural Resources and Environmental Conservation has been selling gold ingots in Yangon, Mandalay and Nay Pyi Taw under the auction system. With an aim at reducing gold prices, the YGEA and Mandalay Region Gold Entrepreneurs Association sold gold bullion supplied by the executive members and the members as well.

Source: The Global New Light of Myanmar

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